Texas is #1 and Florida #2
Texas Tops the List of Financially Distressed States And Florida Ranks 2nd —Residents Are Flooding Google With Searches for 'Debt' and 'Loans'
By Ivy Grace/Yahoo News
The world's eighth-largest economy isn't a country — it's Texas. Bigger than most nations in GDP, the Lone Star State likes to market itself as unstoppable. But behind the bravado, Texans are struggling more than anyone else in America to keep up with their bills.
A new analysis from WalletHub shows Texas ranks No. 1 in financial distress, with Florida not far behind at No. 2. Together, the two powerhouse states are home to millions of residents who are increasingly turning to Google for answers — and the most common searches are simply "debt" and "loans."
"Measuring the share of residents in financial distress is a good way to take the pulse of a state and see whether people are generally thriving or having trouble making ends meet," explained WalletHub analyst Chip Lupo. "When you combine data about people delaying payments with other metrics like bankruptcy filings and credit score changes, it paints a good picture of the overall economic trends of a state."
Texas may boast booming energy, tech, and housing markets, but many households are on shaky ground. The state recorded the ninth-lowest average credit score in the nation in the first quarter of 2025, according to WalletHub's analysis. Roughly 7.1% of Texans had accounts in forbearance or deferred payments, placing them near the top for financial hardship.
Bankruptcy filings are also surging. Non-business bankruptcies jumped more than 22% in Texas over the past year, the sixth-highest increase in the country. Pair that with soaring Google searches for "debt" and "loans," and the message is clear: many Texans are desperate to borrow despite already owing.
Florida: Second Place in Distress
If Texas is in the deepest distress, Florida isn't breathing much easier. WalletHub found that Florida ranks second in the nation, with residents posting one of the steepest year-over-year increases in accounts classified as distressed. In the Q1 2025, about 7.3% of Floridians had accounts in forbearance or deferred payment status, one of the highest rates nationwide.
That makes the Sunshine State's finances look a lot cloudier. Despite being one of the fastest-growing states, with a booming real estate market and steady influx of new residents, more Floridians are struggling to keep up with payments.
By Ivy Grace/Yahoo News
The world's eighth-largest economy isn't a country — it's Texas. Bigger than most nations in GDP, the Lone Star State likes to market itself as unstoppable. But behind the bravado, Texans are struggling more than anyone else in America to keep up with their bills.
A new analysis from WalletHub shows Texas ranks No. 1 in financial distress, with Florida not far behind at No. 2. Together, the two powerhouse states are home to millions of residents who are increasingly turning to Google for answers — and the most common searches are simply "debt" and "loans."
"Measuring the share of residents in financial distress is a good way to take the pulse of a state and see whether people are generally thriving or having trouble making ends meet," explained WalletHub analyst Chip Lupo. "When you combine data about people delaying payments with other metrics like bankruptcy filings and credit score changes, it paints a good picture of the overall economic trends of a state."
Texas may boast booming energy, tech, and housing markets, but many households are on shaky ground. The state recorded the ninth-lowest average credit score in the nation in the first quarter of 2025, according to WalletHub's analysis. Roughly 7.1% of Texans had accounts in forbearance or deferred payments, placing them near the top for financial hardship.
Bankruptcy filings are also surging. Non-business bankruptcies jumped more than 22% in Texas over the past year, the sixth-highest increase in the country. Pair that with soaring Google searches for "debt" and "loans," and the message is clear: many Texans are desperate to borrow despite already owing.
Florida: Second Place in Distress
If Texas is in the deepest distress, Florida isn't breathing much easier. WalletHub found that Florida ranks second in the nation, with residents posting one of the steepest year-over-year increases in accounts classified as distressed. In the Q1 2025, about 7.3% of Floridians had accounts in forbearance or deferred payment status, one of the highest rates nationwide.
That makes the Sunshine State's finances look a lot cloudier. Despite being one of the fastest-growing states, with a booming real estate market and steady influx of new residents, more Floridians are struggling to keep up with payments.
